US Approves Nvidia Chip Sales to Questionable Chinese Firms

• •US approved Nvidia chip sales to Chinese firms with ties to blacklisted entities.
• •New Matrix, a recently established firm, has no verifiable presence at its registered address.
• •Concerns raised about the adequacy of US vetting processes for these approvals.

The US government has authorized sales of Nvidia's advanced AI chips to Chinese companies, including New Matrix, which appears to be a front for entities linked to a US-blacklisted private equity fund. An investigation revealed that New Matrix's registered office was vacant and lacked any significant online presence, raising concerns about the vetting process by the Commerce Department. This approval follows a reversal of earlier restrictions during the Biden administration, allowing Nvidia to sell H200 processors to China under specific conditions. Analysts express doubts about the adequacy of due diligence conducted by US authorities and Nvidia regarding these approvals. The Commerce Department has reportedly cleared around two dozen Chinese firms to handle these chips, including major corporations like Baidu and Tencent, despite ongoing national security concerns regarding China's access to advanced semiconductor technology.